Bank of America is once again offering for sale a large package of mortgage servicing rights and at least a half-dozen or so buyers are lining up to bid.
Fannie Mae and Freddie Mac securitization volume reached its highest level in nearly four years during the first three months of 2013, according to a new Inside Mortgage Finance market analysis and lender ranking.
The non-agency jumbo mortgage-backed security market expanded significantly in the first quarter of 2013, with more new issuance than was produced in all of last year, according to the Inside Mortgage Finance MBS Database. Issuance showed no signs of slowing down entering the second quarter, led by Redwood Trust. Some $3.95 billion in non-agency jumbo MBS was issued in the first quarter, compared with $3.46 billion in issuance in all of last year. The last time non-agency ... [Includes one data chart]
Moody’s Investors Service said it would not have given its highest rating to the jumbo mortgage-backed security issued last week by JPMorgan Chase because of concerns about the deal’s representation and warranty framework and the lack of risk retention by Chase. DBRS, Fitch Ratings and Kroll Bond Rating Agency gave JPMorgan Mortgage Trust 2013-1 AAA ratings with credit enhancement of 7.40 percent on the top-rated tranche. The rating services said the credit enhancement on the deal was ...
With banks starting to issue jumbo mortgage-backed securities instead of holding originations in portfolio, the sector has expanded beyond the two nonbanks that propped up non-agency jumbo MBS issuance since 2010. The activity shows favorable economics for non-agency MBS, including tighter spreads on interest rates between conforming mortgages and non-agency jumbos. The average interest rate on a 30-year fixed-rate conforming mortgage was 3.596 percent this week, according to Inside Mortgage Finance ...
Springleaf Financial is set to issue another subprime mortgage-backed security backed by vintage originations. The fifth deal from Springleaf since 2011 shows continued demand from investors for non-agency MBS. Springleaf’s $835.11 million MBS will receive a AAA rating with loss coverage of 55.5 percent on the top-rated tranche, according to a presale report released this week by Standard & Poor’s. The average seasoning of the loans is seven years. As with previous Springleaf deals, all of ...
Bank of America agreed to a $165.0 million settlement with the National Credit Union Administration this week regarding non-agency mortgage-backed securities purchased by credit unions that subsequently failed. BofA did not admit fault as part of the settlement. The NCUA has received more than $335.0 million in non-agency MBS settlements with five firms and has similar lawsuits pending against nine other firms. The Conference of State Bank Supervisors ... [Includes three briefs]
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